2015 Publication 17 -...

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Department of the TreasuryInternal Revenue Service

TAX GUIDE

2015

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Your FederalIncome TaxFor Individuals

Publication 17Catalog Number 10311G

For use in preparing2015 Returns

Dec 24, 2015

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Your FederalIncome TaxFor Individuals

ContentsWhat's New . . . . . . . . . . . . . . . . . . . . . . . 1Reminders . . . . . . . . . . . . . . . . . . . . . . . . 1Introduction . . . . . . . . . . . . . . . . . . . . . . . 2Part One. The Income Tax Return . . . . . . . . . 4

1 Filing Information . . . . . . . . . . . . . . . . 42 Filing Status . . . . . . . . . . . . . . . . . . . 203 Personal Exemptions and Dependents . . . 254 Tax Withholding and Estimated Tax . . . . . 37

Part Two. Income . . . . . . . . . . . . . . . . . . . 465 Wages, Salaries, and Other Earnings . . . . 466 Tip Income . . . . . . . . . . . . . . . . . . . 547 Interest Income . . . . . . . . . . . . . . . . . 568 Dividends and Other Distributions . . . . . . 649 Rental Income and Expenses . . . . . . . . . 68

10 Retirement Plans, Pensions, and Annuities . . . . . . . . . . . . . . . . . . . . 76

11 Social Security and Equivalent Railroad Retirement Benefits . . . . . . . . . . . . . . 83

12 Other Income . . . . . . . . . . . . . . . . . . 88Part Three. Gains and Losses . . . . . . . . . . . 98

13 Basis of Property . . . . . . . . . . . . . . . . 9814 Sale of Property . . . . . . . . . . . . . . . 10215 Selling Your Home . . . . . . . . . . . . . . 10916 Reporting Gains and Losses . . . . . . . . 116

Part Four. Adjustments to Income . . . . . . . . 11917 Individual Retirement Arrangements

(IRAs) . . . . . . . . . . . . . . . . . . . . 12018 Alimony . . . . . . . . . . . . . . . . . . . . 13319 Education-Related Adjustments . . . . . . 135

Part Five. Standard Deduction and Itemized Deductions . . . . . . . . . . . . . . . . . . . . 138

20 Standard Deduction . . . . . . . . . . . . . 138

21 Medical and Dental Expenses . . . . . . . 14222 Taxes . . . . . . . . . . . . . . . . . . . . . 14723 Interest Expense . . . . . . . . . . . . . . . 15124 Contributions . . . . . . . . . . . . . . . . . 15925 Nonbusiness Casualty and Theft

Losses . . . . . . . . . . . . . . . . . . . . 16726 Car Expenses and Other Employee Business

Expenses . . . . . . . . . . . . . . . . . . 17327 Tax Benefits for Work-Related

Education . . . . . . . . . . . . . . . . . . 19028 Miscellaneous Deductions . . . . . . . . . 19529 Limit on Itemized Deductions . . . . . . . . 200

Part Six. Figuring Your Taxes and Credits . . . 20230 How To Figure Your Tax . . . . . . . . . . . 20231 Tax on Unearned Income of Certain

Children . . . . . . . . . . . . . . . . . . . 20532 Child and Dependent Care Credit . . . . . 21033 Credit for the Elderly or the Disabled . . . . 21634 Child Tax Credit . . . . . . . . . . . . . . . 22035 Education Credits . . . . . . . . . . . . . . 22136 Earned Income Credit (EIC) . . . . . . . . . 22637 Premium Tax Credit (PTC) . . . . . . . . . 24138 Other Credits . . . . . . . . . . . . . . . . . 243

2015 Tax Table . . . . . . . . . . . . . . . . . . . . 2492015 Tax Computation Worksheet . . . . . . . . 2612015 Tax Rate Schedules . . . . . . . . . . . . . . 262Your Rights as a Taxpayer . . . . . . . . . . . . . 263How To Get Tax Help . . . . . . . . . . . . . . . . 265Index . . . . . . . . . . . . . . . . . . . . . . . . . . 266Where To File . . . . . . . . . . . . . . . . . . . . . 285

The explanations and examples in this publication reflect the interpretation by the Internal Revenue Service (IRS) of:

Tax laws enacted by Congress,Treasury regulations, andCourt decisions.

However, the information given does not cover every situation and is not intended to replace the law or change its meaning.

All material in this publication may be reprinted freely. A citation to Your Federal Income Tax (2015) would be appropriate.

This publication covers some subjects on which a court may have made a decision more favorable to taxpayers than the interpretation by the IRS. Until these differing interpretations are resolved by higher court decisions or in some other way, this publication will continue to present the interpretations by the IRS.

All taxpayers have important rights when working with the IRS. These rights are described in Your Rights as a Taxpayer in the back of this publication.

Department of the Treasury

Internal Revenue Service


What's NewThis section summarizes important tax changes that took effect in 2015. Most of these changes are discussed in more detail throughout this publication.Future developments. For the latest information about the tax law topics covered in this publication, such as legislation enacted after it was published, go to www.irs.gov/pub17.Information reporting about health coverage. If you or some-one in your family had health cov-erage in 2015, the provider of that coverage is required to send a Form 1095-A, 1095-B, or 1095-C (with Part III completed) by January 31, 2016, that lists individuals in your family who were enrolled in the coverage and shows their months of coverage. Use this infor-mation to help complete your re-turn. You do not need to attach these forms to your return. You may have had health care cover-age for some or all of 2015 even if you didn’t receive a form with this information. See chapter 37 and the Form 1095-A, 1095-B, or 1095-C Instructions for Recipient for more information.Information reporting about employer offer of coverage. If you or someone in your family was an employee in 2015, the employer may have sent you a Form 1095-C. Part II of Form 1095-C will show whether your employer offered you health insurance coverage and in-formation about the offer. If you purchased health insurance cover-age for 2015 through the Health In-surance Marketplace and wish to claim the premium tax credit, this information will help you see if you are eligible for the credit. You do not need to attach Form 1095-C to your return. If you do not wish to claim the premium tax credit for 2015, you do not need the informa-tion in Part II. Form 1095-C may in-clude information in Part III if you, or others in your family, enrolled in

an employer’s health plan. See chapter 37 for information about the premium tax credit.Health care individual responsibility payment increased. If you or someone in your household didn’t have qualifying health care coverage or qualify for a coverage exemption for one or more months of 2015, the amount of your shared responsibility payment may be much higher this year than it was last year. Like last year, you must do one of the following.

Indicate on your tax return that you, your spouse (if filing jointly), and anyone you can or do claim as a dependent had qualifying health care coverage throughout 2015.Claim an exemption from the health care coverage require-ment for some or all of 2015 and attach Form 8965 to your return.Make a shared responsibility payment if, for any month in 2015, you, your spouse (if fil-ing jointly), or anyone you can or do claim as a dependent didn’t have coverage and does not qualify for a cover-age exemption.

See the Instructions for Form 8965 for details.Requirement to reconcile advance payments of the premium tax credit. If you or a family mem-ber enrolled in health insurance through the Marketplace and ad-vance payments of the premium tax credit were made to your insur-ance company to reduce your monthly premium payment, attach Form 8962 to your return to recon-cile (compare) the advance pay-ments with your premium tax credit for the year, which you figure on Form 8962. The Marketplace is re-quired to send Form 1095-A by January 31, 2016, listing the ad-vance payments and other infor-mation you need to figure your pre-mium tax credit. Use Form 1095-A

to complete Form 8962. Attach Form 8962 to your return. Do not attach Form 1095-A to your return. See chapter 37.Achieving a Better Life Experience (ABLE) account. This is a new type of savings account for in-dividuals with disabilities and their families. For 2015, you can contrib-ute up to $14,000. Distributions are tax-free if used to pay the benefi-ciary’s qualified disability expen-ses. Don't deduct your contribu-tions on your tax return. For details, see Pub. 907.Due date of return. File your tax return by April 18, 2016. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Colum-bia—even if you do not live in the District of Columbia. If you live in Maine or Massachusetts, you have until April 19, 2016. That is be-cause of the Patriots’ Day holiday in those states. See chapter 1.Public safety officers. Certain amounts received because of the death of a public safety officer are nontaxable. See Pub. 525 for de-tails.Certain charitable contributions. A special rule applies to cash contributions made between January 1, 2015, and April 15, 2015, to benefit the families of slain New York detectives Wenjian Liu or Rafael Ramos. See chapter 24.Direct deposits of refund to a myRA® account. You now can have your refund directly deposited to a new retirement savings pro-gram called a myRA®. This is a starter retirement account offered by the Department of the Treasury. See chapter 1.Health coverage tax credit. The health coverage tax credit, which expired at the end of 2013, has been reinstated retroactive to Jan-uary 1, 2014. See chapter 38.Additional child tax credit. You can't claim the additional child tax

credit if you file Form 2555, For-eign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. See chapter 34.My Social Security Account. Social security beneficiaries can now get a variety of information from the SSA website with a my Social Security account. See chap-ter 11.Expired tax benefits. At the time this publication was prepared for printing, certain tax benefits had expired. These included the follow-ing.

Tuition and fees deduction.Deduction for educator ex-penses in figuring adjusted gross income.Deduction for state and local general sales taxes.The exclusion from income of qualified charitable distribu-tions from IRAs.Credit for certain nonbusiness energy property.Deduction for mortgage insur-ance premiums.

You can find out whether legisla-tion extended these and other tax benefits to allow you to claim them on your 2015 return at www.irs.gov/pub17.Application of onerolloverperyear limit for IRAs. Starting in 2015, you can make only one roll-over from one IRA to another (or the same) IRA in any 1-year period regardless of the number of IRAs you own. However, you can con-tinue to make unlimited trustee-to-trustee transfers between IRAs be-cause this type of transfer is not considered a rollover. Also, there is no limit to the number of rollovers from a traditional IRA to a Roth IRA (also known as conversions). See chapter 17.

RemindersListed below are important reminders and other items that may help you file your 2015 tax return. Many of these items are explained in more detail later in this publication.Enter your social security number (SSN). Enter your SSN in the space provided on your tax form. If you filed a joint return for 2014 and are filing a joint return for 2015 with the same spouse, enter your names and SSNs in the same

order as on your 2014 return. See chapter 1.Secure your tax records from identity theft. Identity theft occurs when someone uses your personal information, such as your name, SSN, or other identifying informa-tion, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return us-ing your SSN to receive a refund. For more information about identity

theft and how to reduce your risk from it, see chapter 1.Taxpayer identification numbers. You must provide the tax-payer identification number for each person for whom you claim certain tax benefits. This applies even if the person was born in 2015. Generally, this number is the person's social security number (SSN). See chapter 1.Foreign source income. If you are a U.S. citizen with income from

sources outside the United States (foreign income), you must report all such income on your tax return unless it is exempt by law or a tax treaty. This is true whether you live inside or outside the United States and whether or not you receive a Form W-2 or Form 1099 from the foreign payer. This applies to earned income (such as wages and tips) as well as unearned in-come (such as interest, dividends,

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capital gains, pensions, rents, and royalties).

If you live outside the United States, you may be able to exclude part or all of your foreign earned in-come. For details, see Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad.Foreign financial assets. If you had foreign financial assets in 2015, you may have to file Form 8938 with your return. Check Form 8938 and its instructions or www.IRS.gov/form8938 for details.Automatic 6month extension to file tax return. You can get an au-tomatic 6-month extension of time to file your tax return. See chap-ter 1.Include your phone number on your return. To promptly resolve any questions we have in process-ing your tax return, we would like to be able to call you. Please enter your daytime telephone number on your tax form next to your signature and occupation. If you are filing a joint return, you can enter either your or your spouse's daytime phone number.

Payment of taxes. You can pay your taxes online, by phone, or by check or money order. You can make a direct transfer from your bank account or use a credit or debit card. See chapter 1.Faster ways to file your return. The IRS offers fast, accurate ways to file your tax return information without filing a paper tax return. You can use IRS e-file (electronic filing). See chapter 1.Free electronic filing. You may be able to file your 2015 taxes on-line for free. See chapter 1.Change of address. If you change your address, notify the IRS. See Change of Address in chapter 1.Refund on a late filed return. If you were due a refund but you did not file a return, you generally must file your return within 3 years from the date the return was due (in-cluding extensions) to get that re-fund. See chapter 1.Frivolous tax returns. The IRS has published a list of positions

that are identified as frivolous. The penalty for filing a frivolous tax re-turn is $5,000. See chapter 1.Filing erroneous claim for refund or credit. You may have to pay a penalty if you file an errone-ous claim for refund or credit. See chapter 1.Privacy Act and paperwork reduction information. The IRS Restructuring and Reform Act of 1998, the Privacy Act of 1974, and the Paperwork Reduction Act of 1980 require that when we ask you for information we must first tell you what our legal right is to ask for the information, why we are asking for it, how it will be used, what could happen if we do not receive it, and whether your response is volun-tary, required to obtain a benefit, or mandatory under the law. A com-plete statement on this subject can be found in your tax form instruc-tions.Preparer e-file mandate. Most paid preparers must e-file returns they prepare and file. Your pre-parer may make you aware of this

requirement and the options avail-able to you.Treasury Inspector General for Tax Administration. If you want to confidentially report misconduct, waste, fraud, or abuse by an IRS employee, you can call 1-800-366-4484 (call 1-800-877-8339 if you are deaf, hard of hearing, or have a speech disability, and are using TTY/TDD equipment). You can remain anon-ymous.Photographs of missing children. The Internal Revenue Serv-ice is a proud partner with the Na-tional Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publica-tion on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.

IntroductionThis publication covers the general rules for filing a federal income tax return. It supplements the informa-tion contained in your tax form in-structions. It explains the tax law to make sure you pay only the tax you owe and no more.How this publication is arranged. This publication closely follows Form 1040, U.S. Individual Income Tax Return. It is divided into six parts which cover different sections of Form 1040. Each part is further divided into chapters which generally discuss one line of the form. Do not worry if you file Form 1040A or Form 1040EZ. Any-thing included on a line of either of these forms is also included on Form 1040.

The table of contents inside the front cover and the index in the back of the publication are useful tools to help you find the informa-tion you need.What is in this publication. The publication begins with the rules for filing a tax return. It explains:

1. Who must file a return,2. Which tax form to use,3. When the return is due,4. How to e-file your return, and5. Other general information.

It will help you identify which filing status you qualify for, whether you

can claim any dependents, and whether the income you receive is taxable. The publication goes on to explain the standard deduction, the kinds of expenses you may be able to deduct, and the various kinds of credits you may be able to take to reduce your tax.

Throughout the publication are examples showing how the tax law applies in typical situations. Also throughout the publication are flow-charts and tables that present tax information in an easy-to-under-stand manner.

Many of the subjects discussed in this publication are discussed in greater detail in other IRS publica-tions. References to those other publications are provided for your information.

Icons. Small graphic symbols, or icons, are used to draw your at-tention to special information. See Table 1 for an explanation of each icon used in this publication.What is not covered in this publication. Some material that you may find helpful is not included in this publication but can be found in your tax form instruction booklet. This includes lists of:

Where to report certain items shown on information docu-ments, andTax Topics you can read at www.irs.gov/taxtopics.

If you operate your own busi-ness or have other self-employ-ment income, such as from baby-sitting or selling crafts, see the following publications for more in-formation.

Pub. 334, Tax Guide for Small Business (For Individuals Who Use Schedule C or C-EZ).Pub. 535, Business Expen-ses.Pub. 587, Business Use of Your Home (Including Use by Daycare Providers).

Help from the IRS. There are many ways you can get help from the IRS. These are explained un-der How To Get Tax Help in the back of this publication.Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions.

You can send us comments from www.irs.gov/formspubs. Click on “More Information” and then on “Give us feedback.”

Or you can write to:

Internal Revenue ServiceTax Forms and Publications1111 Constitution Ave. NW, IR-6526Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspond-ence.

Although we cannot respond in-dividually to each comment re-ceived, we do appreciate your feedback and will consider your comments as we revise our tax products.

Ordering forms and publica-tions. Visit www.irs.gov/formspubs to download forms and publications. Otherwise, you can go to www.irs.gov/orderforms to or-der current and prior-year forms and instructions. Your order should arrive within 10 business days.

Tax questions. If you have a tax question not answered by this publication, check IRS.gov and How To Get Tax Help at the end of this publication.IRS mission. Provide America's taxpayers top-quality service by helping them understand and meet their tax responsibilities and en-force the law with integrity and fair-ness to all.

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Table 1. Legend of Icons

Icon Explanation

CAUTION!

Items that may cause you particular problems, or an alert about pending legislation that may be enacted after this publication goes to print.An Internet site or an email address.

An address you may need.

RECORDS

Items you should keep in your personal records.

Items you may need to figure or a worksheet you may need to complete and keep for your records.

An important phone number.

TIP Helpful information you may need.

Publication 17 (2015) Page 3

Part One.

The Income Tax Return

The four chapters in this part provide basic information on the tax system. They take you through the first steps of filling out a tax return—such as deciding what your filing status is, how many exemptions you can take, and what form to file. They also discuss recordkeeping requirements, IRS e-file (electronic filing), certain penalties, and the two methods used to pay tax during the year: withholding and estimated tax.

1.

Filing Information

What's NewAchieving a Better Life Experience (ABLE) account. This is a new type of savings account for individuals with disabilities and their families. For 2015, you can contribute up to $14,000. Distributions are tax-free if used to pay the ben-eficiary’s qualified disability expenses. Don't de-duct your contributions on your tax return. For details, see Pub. 907.Due date of return. The due date to file your tax return is April 18, 2016. The due date is April 18, instead of April 15, because of the Emancipation Day holiday in the District of Co-lumbia—even if you do not live in the District of Columbia. If you live in Maine or Massachu-setts, you have until April 19, 2016. That is be-cause of the Patriots' Day holiday in those states.Direct deposits of refund to a myRA® account. You now can have your refund directly deposited to a new retirement savings program called myRA®. This is a starter retirement ac-count offered by the Department of the Treas-ury.Certain charitable contributions. A special rule applies to cash contributions made be-tween January 1, 2015, and April 15, 2015, to benefit slain New York detectives Wenjian Liu or Rafael Ramos. See Pub. 526 for details.Public safety officers. Certain amounts re-ceived because of the death of a public safety officer are nontaxable. See Pub. 525 for details.Additional child tax credit. You can't claim the additional child tax credit if you file Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion. See chapter 38 for details.Health coverage tax credit. The health cov-erage tax credit, which expired at the end of 2013, has been reinstated. See Who Should File, later. See chapter 38 for information about the health coverage tax credit.

Expired tax benefits. At the time this publica-tion was prepared for printing, certain tax bene-fits had expired. These included the deduction for educator expenses and the tuition and fees deduction. You can find out whether legislation extended these and other tax benefits to allow you to claim them on your 2015 return at www.irs.gov/pub17.Who must file. Generally, the amount of in-come you can receive before you must file a re-turn has been increased. See Table 1-1, Ta-ble 1-2, and Table 1-3 for the specific amounts.

RemindersFile online. Rather than filing a return on pa-per, you may be able to file electronically using IRS e-file. Create your own personal identifica-tion number (PIN) and file a completely paper-less tax return. For more information, see Why Should I Use IRS e-file?, later.Change of address. If you change your ad-dress, you should notify the IRS. You can use Form 8822 to notify the IRS of the change. See Change of Address, later, under What Happens After I File.Enter your social security number. You must enter your social security number (SSN) in the spaces provided on your tax return. If you file a joint return, enter the SSNs in the same or-der as the names.Direct deposit of refund. Instead of getting a paper check, you may be able to have your re-fund deposited directly into your account at a bank or other financial institution. See IRS Di-rect Deposit under Refunds, later. If you choose direct deposit of your refund, you may be able to split the refund among two or three accounts.Pay online or by phone. If you owe additional tax, you may be able to pay online or by phone. See How To Pay, later.Installment agreement. If you cannot pay the full amount due with your return, you may ask to make monthly installment payments. See In-stallment Agreement, later, under Amount You Owe. You may be able to apply online for a pay-ment agreement if you owe federal tax, interest, and penalties.Automatic 6month extension. You can get an automatic 6-month extension to file your tax return if, no later than the date your return is due, you file Form 4868, Application for Auto-matic Extension of Time To File U.S. Individual Income Tax Return. See Automatic Extension, later.

Service in combat zone. You are allowed ex-tra time to take care of your tax matters if you are a member of the Armed Forces who served in a combat zone, or if you served in the combat zone in support of the Armed Forces. See Indi-viduals Serving in Combat Zone, later, under When Do I Have To File.Adoption taxpayer identification number. If a child has been placed in your home for purpo-ses of legal adoption and you won't be able to get a social security number for the child in time to file your return, you may be able to get an adoption taxpayer identification number (ATIN). For more information, see Social Security Num-ber (SSN), later.Taxpayer identification number for aliens. If you or your dependent is a nonresident or res-ident alien who doesn't have and isn't eligible to get a social security number, file Form W-7, Ap-plication for IRS Individual Taxpayer Identifica-tion Number, with the IRS. For more informa-tion, see Social Security Number (SSN), later.Frivolous tax submissions. The IRS has published a list of positions that are identified as frivolous. The penalty for filing a frivolous tax re-turn is $5,000. Also, the $5,000 penalty will ap-ply to other specified frivolous submissions. For more information, see Civil Penalties, later.

IntroductionThis chapter discusses the following topics.

Whether you have to file a return.Which form to use.How to file electronically.How to file for free.When, how, and where to file your return.What happens if you pay too little or too much tax.What records you should keep and how long you should keep them.How you can change a return you have al-ready filed.

Do I Have ToFile a Return?You must file a federal income tax return if you are a citizen or resident of the United States or a resident of Puerto Rico and you meet the filing requirements for any of the following categories that apply to you.

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1. Individuals in general. (There are special rules for surviving spouses, executors, ad-ministrators, legal representatives, U.S. citizens and residents living outside the United States, residents of Puerto Rico, and individuals with income from U.S. pos-sessions.)

2. Dependents.3. Certain children under age 19 or full-time

students.4. Self-employed persons.5. Aliens.

The filing requirements for each category are explained in this chapter.

The filing requirements apply even if you don't owe tax.

Even if you don't have to file a return, it may be to your advantage to do so. See Who Should File, later.

File only one federal income tax return for the year regardless of how many jobs you had, how many Forms W-2

you received, or how many states you lived in during the year. Don't file more than one original return for the same year, even if you have not gotten your refund or have not heard from the IRS since you filed.

Individuals—In GeneralIf you are a U.S. citizen or resident, whether you must file a return depends on three factors:

1. Your gross income,2. Your filing status, and3. Your age.

To find out whether you must file, see Ta-ble 1-1, Table 1-2, and Table 1-3. Even if no ta-ble shows that you must file, you may need to file to get money back. See Who Should File, later.Gross income. This includes all income you receive in the form of money, goods, property, and services that isn't exempt from tax. It also includes income from sources outside the Uni-ted States or from the sale of your main home (even if you can exclude all or part of it). Include part of your social security benefits if:

1. You were married, filing a separate return, and you lived with your spouse at any time during 2015; or

2. Half of your social security benefits plus your other gross income and any tax-ex-empt interest is more than $25,000 ($32,000 if married filing jointly).

If either (1) or (2) applies, see the instructions for Form 1040 or 1040A, or Pub. 915, Social Security and Equivalent Railroad Retirement Benefits, to figure the social security benefits you must include in gross income.

Common types of income are discussed in Part Two of this publication.

Community income. If you are married and your permanent home is in a community

TIP

CAUTION!

property state, half of any income described by state law as community income may be consid-ered yours. This affects your federal taxes, in-cluding whether you must file if you don't file a joint return with your spouse. See Pub. 555, Community Property, for more information.

Nevada, Washington, and California do-mestic partners. A registered domestic part-ner in Nevada, Washington, or California gener-ally must report half the combined community income of the individual and his or her domestic partner. See Pub. 555.

Self-employed individuals. If you are self-employed, your gross income includes the amount on line 7 of Schedule C (Form 1040), Profit or Loss From Business; line 1 of Sched-ule C-EZ (Form 1040), Net Profit From Busi-ness; and line 9 of Schedule F (Form 1040), Profit or Loss From Farming. See Self-Em-ployed Persons, later, for more information about your filing requirements.

If you don't report all of your self-em-ployment income, your social security benefits may be lower when you retire.

Filing status. Your filing status depends on whether you are single or married and on your family situation. Your filing status is determined on the last day of your tax year, which is De-cember 31 for most taxpayers. See chapter 2 for an explanation of each filing status.Age. If you are 65 or older at the end of the year, you generally can have a higher amount

CAUTION!

of gross income than other taxpayers before you must file. See Table 1-1. You are consid-ered 65 on the day before your 65th birthday. For example, if your 65th birthday is on January 1, 2016, you are considered 65 for 2015.

Surviving Spouses,Executors, Administrators,and Legal RepresentativesYou must file a final return for a decedent (a person who died) if both of the following are true.

You are the surviving spouse, executor, administrator, or legal representative.The decedent met the filing requirements at the date of death.

For more information on rules for filing a de-cedent's final return, see Pub. 559, Survivors, Executors, and Administrators.

U.S. Citizens and Resident Aliens Living AbroadTo determine whether you must file a return, in-clude in your gross income any income you re-ceived abroad, including any income you can exclude under the foreign earned income exclu-sion. For information on special tax rules that may apply to you, see Pub. 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad. It is available online and at most U.S. embassies and consulates. See How To Get Tax Help in the back of this publication.

Table 1-1. 2015 Filing Requirements for Most Taxpayers

IF your filing status is...AND at the end of 2015 you were...*

THEN file a return if your gross income was at least...**

single under 65 $10,30065 or older $11,850

married filing jointly*** under 65 (both spouses) $20,60065 or older (one spouse) $21,85065 or older (both spouses) $23,100

married filing separately any age $ 4,000head of household under 65 $13,250

65 or older $14,800qualifying widow(er) with dependent child

under 65 $16,600 65 or older $17,850

* If you were born on January 1, 1951, you are considered to be age 65 at the end of 2015. (If your spouse died in 2015 or if you are preparing a return for someone who died in 2015, see Pub. 501.)

** Gross income means all income you received in the form of money, goods, property, and services that isn't exempt from tax, including any income from sources outside the United States or from the sale of your main home (even if you can exclude part or all of it). Don't include any social security benefits unless (a) you are married filing a separate return and you lived with your spouse at any time during 2015 or (b) one-half of your social security benefits plus your other gross income and any tax-exempt interest is more than $25,000 ($32,000 if married filing jointly). If (a) or (b) applies, see the instructions for Form 1040 or 1040A or Pub. 915 to figure the taxable part of social security benefits you must include in gross income. Gross income includes gains, but not losses, reported on Form 8949 or Schedule D. Gross income from a business means, for example, the amount on Schedule C, line 7, or Schedule F, line 9. But, in figuring gross income, don't reduce your income by any losses, including any loss on Schedule C, line 7, or Schedule F, line 9.

*** If you didn't live with your spouse at the end of 2015 (or on the date your spouse died) and your gross income was at least $4,000, you must file a return regardless of your age.


Chapter 1 Filing Information Page 5

Residents of Puerto RicoIf you are a U.S. citizen and also a bona fide resident of Puerto Rico, you generally must file a U.S. income tax return for any year in which you meet the income requirements. This is in addition to any legal requirement you may have to file an income tax return with Puerto Rico.

If you are a bona fide resident of Puerto Rico for the entire year, your U.S. gross income doesn't include income from sources within Pu-erto Rico. It does, however, include any income you received for your services as an employee of the United States or a U.S. agency. If you re-ceive income from Puerto Rican sources that isn't subject to U.S. tax, you must reduce your standard deduction. As a result, the amount of income you must have before you are required to file a U.S. income tax return is lower than the applicable amount in Table 1-1 or Table 1-2. For more information, see Pub. 570, Tax Guide for Individuals With Income From U.S. Posses-sions.

Individuals With Income FromU.S. PossessionsIf you had income from Guam, the Common-wealth of the Northern Mariana Islands, Ameri-can Samoa, or the U.S. Virgin Islands, special rules may apply when determining whether you must file a U.S. federal income tax return. In ad-dition, you may have to file a return with the in-dividual island government. See Pub. 570 for more information.

DependentsIf you are a dependent (one who meets the de-pendency tests in chapter 3), see Table 1-2 to find out whether you must file a return. You also must file if your situation is described in Ta-ble 1-3.Responsibility of parent. Generally, a child is responsible for filing his or her own tax return and for paying any tax on the return. If a de-pendent child must file an income tax return but cannot file due to age or any other reason, then a parent, guardian, or other legally responsible person must file it for the child. If the child can-not sign the return, the parent or guardian must sign the child's name followed by the words “By (your signature), parent for minor child.”

Child's earnings. Amounts a child earns by performing services are included in his or her gross income and not the gross income of the parent. This is true even if under local law the child's parent has the right to the earnings and may actually have received them. But if the child doesn't pay the tax due on this income, the parent is liable for the tax.

Certain Children Under Age 19 or FullTime StudentsIf a child's only income is interest and dividends (including capital gain distributions and Alaska Permanent Fund dividends), the child was un-der age 19 at the end of 2015 or was a full-time student under age 24 at the end of 2015, and

certain other conditions are met, a parent can elect to include the child's income on the pa-rent's return. If this election is made, the child doesn't have to file a return. See Parent's Elec-tion To Report Child's Interest and Dividends in chapter 31.

SelfEmployed PersonsYou are self-employed if you:

Carry on a trade or business as a sole pro-prietor,Are an independent contractor,Are a member of a partnership, orAre in business for yourself in any other way.

Self-employment can include work in addi-tion to your regular full-time business activities, such as certain part-time work you do at home or in addition to your regular job.

You must file a return if your gross income is at least as much as the filing requirement amount for your filing status and age (shown in Table 1-1). Also, you must file Form 1040 and Schedule SE (Form 1040), Self-Employment Tax, if:

1. Your net earnings from self-employment (excluding church employee income) were $400 or more, or

2. You had church employee income of $108.28 or more. (See Table 1-3.)

Use Schedule SE (Form 1040) to figure your self-employment tax. Self-employment tax is comparable to the social security and Medicare tax withheld from an employee's wages. For more information about this tax, see Pub. 334, Tax Guide for Small Business.

Employees of foreign governments or in-ternational organizations. If you are a U.S. citizen who works in the United States for an in-ternational organization, a foreign government, or a wholly owned instrumentality of a foreign government, and your employer isn't required to withhold social security and Medicare taxes from your wages, you must include your earn-ings from services performed in the United States when figuring your net earnings from self-employment.

Ministers. You must include income from services you performed as a minister when fig-uring your net earnings from self-employment, unless you have an exemption from self-em-ployment tax. This also applies to Christian Sci-ence practitioners and members of a religious order who have not taken a vow of poverty. For more information, see Pub. 517, Social Security and Other Information for Members of the Clergy and Religious Workers.

AliensYour status as an alien (resident, nonresident, or dual-status) determines whether and how you must file an income tax return.

The rules used to determine your alien sta-tus are discussed in Pub. 519, U.S. Tax Guide for Aliens.

Resident alien. If you are a resident alien for the entire year, you must file a tax return follow-ing the same rules that apply to U.S. citizens. Use the forms discussed in this publication.Nonresident alien. If you are a nonresident alien, the rules and tax forms that apply to you are different from those that apply to U.S. citi-zens and resident aliens. See Pub. 519 to find out if U.S. income tax laws apply to you and which forms you should file.Dualstatus taxpayer. If you are a resident alien for part of the tax year and a nonresident alien for the rest of the year, you are a dual-sta-tus taxpayer. Different rules apply for each part of the year. For information on dual-status tax-payers, see Pub. 519.

Who Should FileEven if you don't have to file, you should file a federal income tax return to get money back if any of the following conditions apply.

1. You had federal income tax withheld or made estimated tax payments.

2. You qualify for the earned income credit. See chapter 36 for more information.

3. You qualify for the additional child tax credit. See chapter 34 for more informa-tion.

4. You qualify for the premium tax credit. See chapter 37 for more information.

5. You qualify for the health coverage tax credit. See chapter 38 for more informa-tion.

6. You qualify for the American opportunity credit. See chapter 35 for more informa-tion.

7. You qualify for the credit for federal tax on fuels. See chapter 38 for more informa-tion.

Which FormShould I Use?You must use one of three forms to file your re-turn: Form 1040EZ, Form 1040A, or Form 1040. (But also see Why Should I Use IRS e-file?, later.)

See the discussion under Form 1040 for when you must use that form.

Form 1040EZForm 1040EZ is the simplest form to use.You can use Form 1040EZ if all of the following apply.

1. Your filing status is single or married filing jointly. If you were a nonresident alien at any time in 2015, your filing status must be married filing jointly.

2. You (and your spouse if married filing a joint return) were under age 65 and not blind at the end of 2015. If you were born

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on January 1, 1951, you are considered to be age 65 at the end of 2015.

3. You don't claim any dependents.4. Your taxable income is less than

$100,000.5. Your income is only from wages, salaries,

tips, unemployment compensation, Alaska Permanent Fund dividends, taxable schol-arship and fellowship grants, and taxable interest of $1,500 or less.

6. You don't claim any adjustments to in-come, such as a deduction for IRA contri-butions or student loan interest.

7. You don't claim any credits other than the earned income credit.

8. You don't owe any household employment taxes on wages you paid to a household employee.

9. If you earned tips, they are included in boxes 5 and 7 of your Form W-2.

10. You are not a debtor in a chapter 11 bank-ruptcy case filed after October 16, 2005.

You must meet all of these requirements to use Form 1040EZ. If you don't, you must use Form 1040A or Form 1040.Figuring tax. On Form 1040EZ, you can use only the tax table to figure your income tax. You can find the tax table in the Instructions for Form 1040EZ. You cannot use Form 1040EZ to report any other tax.

Form 1040AIf you don't qualify to use Form 1040EZ, you may be able to use Form 1040A.You can use Form 1040A if all of the following apply.

1. Your income is only from:a. Wages, salaries, and tips,b. Interest,c. Ordinary dividends (including Alaska

Permanent Fund dividends),d. Capital gain distributions,e. IRA distributions,f. Pensions and annuities,

g. Unemployment compensation,h. Taxable social security and railroad

retirement benefits, andi. Taxable scholarship and fellowship

grants.If you receive a capital gain distribution

that includes unrecaptured section 1250 gain, section 1202 gain, or collectibles (28%) gain, you cannot use Form 1040A. You must use Form 1040.

2. Your taxable income is less than $100,000.

3. Your adjustments to income are for only the following items.a. IRA deduction. b. Student loan interest deduction.

4. You don't itemize your deductions. 5. You claim only the following tax credits.

a. The credit for child and dependent care expenses. (See chapter 32.)

b. The credit for the elderly or the disa-bled. (See chapter 33.)

c. The education credits. (See chap-ter 35.)

d. The retirement savings contributions credit. (See chapter 38.)

e. The child tax credit. (See chapter 34.) f. The earned income credit. (See chap-

ter 36.)g. The additional child tax credit. (See

chapter 34.)h. The premium tax credit. (See chap-

ter 37.)6. You didn't have an alternative minimum

tax adjustment on stock you acquired from the exercise of an incentive stock option. (See Pub. 525, Taxable and Nontaxable Income.)

You can also use Form 1040A if you re-ceived employer-provided dependent care ben-efits or if you owe tax from the recapture of an education credit or the alternative minimum tax.

You must meet all these requirements to use Form 1040A. If you don't, you must use Form 1040.

Form 1040If you cannot use Form 1040EZ or Form 1040A, you must use Form 1040. You can use Form 1040 to report all types of income, deductions, and credits.

2015 Filing Requirements for DependentsSee chapter 3 to find out if someone can claim you as a dependent.

If your parents (or someone else) can claim you as a dependent, use this table to see if you must file a return. (See Table 1-3 for other situations when you must file.)

In this table, earned income includes salaries, wages, tips, and professional fees. It also includes taxable scholarship and fellowship grants. (See Scholarships and fellowships in chapter 12.) Unearned income includes investment-type income such as taxable interest, ordinary dividends, and capital gain distributions. It also includes unemployment compensation, taxable social security benefits, pensions, annuities, cancellation of debt, and distributions of unearned income from a trust. Gross income is the total of your earned and unearned income.

Single dependents—Were you either age 65 or older or blind?No. You must file a return if any of the following apply.

• Your unearned income was more than $1,050.• Your earned income was more than $6,300.• Your gross income was more than the larger of:

• $1,050, or• Your earned income (up to $5,950) plus $350.

Yes. You must file a return if any of the following apply.• Your unearned income was more than $2,600 ($4,150 if 65 or older and blind).• Your earned income was more than $7,850 ($9,400 if 65 or older and blind).• Your gross income was more than the larger of:

• $2,600 ($4,150 if 65 or older and blind), or• Your earned income (up to $5,950) plus $1,900 ($3,450 if 65 or older and blind).

Married dependents—Were you either age 65 or older or blind?No. You must file a return if any of the following apply.

• Your unearned income was more than $1,050.• Your earned income was more than $6,300.• Your gross income was at least $5 and your spouse files a separate return and

itemizes deductions.• Your gross income was more than the larger of:

• $1,050, or• Your earned income (up to $5,950) plus $350.

Yes. You must file a return if any of the following apply.• Your unearned income was more than $2,300 ($3,550 if 65 or older and blind).• Your earned income was more than $7,550 ($8,800 if 65 or older and blind).• Your gross income was at least $5 and your spouse files a separate return and

itemizes deductions.• Your gross income was more than the larger of:

• $2,300 ($3,550 if 65 or older and blind), or• Your earned income (up to $5,950) plus $1,600 ($2,850 if 65 or older and blind).

Table 1-2.



You may pay less tax by filing Form 1040 because you can take itemized deductions, some adjustments to income, and credits you cannot take on Form 1040A or Form 1040EZ.You must use Form 1040 if any of the following apply.

1. Your taxable income is $100,000 or more.2. You itemize your deductions on Sched-

ule A.3. You had income that cannot be reported

on Form 1040EZ or Form 1040A, includ-ing tax-exempt interest from private activ-ity bonds issued after August 7, 1986.

4. You claim any adjustments to gross in-come other than the adjustments listed earlier under Form 1040A.

5. Your Form W-2, box 12, shows uncollec-ted employee tax (social security and Medicare tax) on tips (see chapter 6) or group-term life insurance (see chapter 5).

6. You received $20 or more in tips in any 1 month and didn't report all of them to your employer. (See chapter 6.)

7. You were a bona fide resident of Puerto Rico and exclude income from sources in Puerto Rico.

8. You claim any credits other than the cred-its listed earlier under Form 1040A.

9. You owe the excise tax on insider stock compensation from an expatriated corpo-ration.

10. Your Form W-2 shows an amount in box 12 with a code Z.

11. You had a qualified health savings ac-count funding distribution from your IRA.

12. You are an employee and your employer didn't withhold social security and Medi-care tax.

13. You have to file other forms with your re-turn to report certain exclusions, taxes, or transactions, such as Form 8959 or Form 8960.

14. You are a debtor in a bankruptcy case filed after October 16, 2005.

15. You must repay the first-time homebuyer credit.

16. You have adjusted gross income of more than $154,950 and must reduce the dollar amount of your exemptions.

17. You received a Form W-2 that incorrectly includes in box 1 amounts that are pay-ments under a Medicaid waiver program, and you cannot get a corrected Form W-2.

Why Should I Use IRS e-file?IRS e-file is a safe and secure way to file your tax return. Combined with direct deposit, it is the fastest way to receive a refund. Approxi-mately 85 percent of taxpayers use IRS e-file.

IRS e-fileIRS e-file uses automation to replace most of the man-

ual steps needed to process paper returns. As a result, the processing of e-file returns is faster and more accurate than the processing of pa-per returns. However, as with a paper return, you are responsible for making sure your return contains accurate information and is filed on time.

Most tax return preparers are required to use IRS e-file. If your adjusted gross income (AGI) is less than a certain amount, you are eligible for Free File, a free tax software service offered by IRS partners, to prepare and e-file your re-turn for free. If your income is over the amount, you are still eligible for Free File Fillable Forms, an electronic version of IRS paper forms. Ta-ble 1-4 lists the free ways to e-file your return.If your return is filed with IRS e-file, you will re-ceive an acknowledgment that your return was received and accepted. If you owe tax, you can e-file and pay electronically. The IRS has pro-cessed more than one billion e-filed returns safely and securely. Using e-file doesn't affect your chances of an IRS examination of your re-turn.Electronic return signatures. To file your re-turn electronically, you must sign the return electronically using a personal identification number (PIN). If you are filing online, you must use a Self-Select PIN. If you are filing electroni-cally using a tax practitioner, you can use a Self-Select PIN or a Practitioner PIN.SelfSelect PIN. The Self-Select PIN method allows you to create your own PIN. If you are married filing jointly, you and your spouse will each need to create a PIN and enter these PINs as your electronic signatures.

A PIN is any combination of five digits you choose except five zeros. If you use a PIN, there is nothing to sign and nothing to mail—not even your Forms W-2.

To verify your identity, you will be prompted to enter your adjusted gross income (AGI) from your originally filed 2014 federal income tax re-turn, if applicable. Don't use your AGI from an amended return (Form 1040X) or a math error correction made by the IRS. AGI is the amount shown on your 2014 Form 1040, line 38; Form 1040A, line 22; or Form 1040EZ, line 4. If you

Table 1-3. Other Situations When You Must File a 2015 Return

You must file a return if any of the five conditions below apply for 2015.1. You owe any special taxes, including any of the following.

a. Alternative minimum tax.b. Additional tax on a qualified plan, including an individual retirement arrangement (IRA), or other tax-favored account. But if

you are filing a return only because you owe this tax, you can file Form 5329 by itself.c. Household employment taxes. But if you are filing a return only because you owe this tax, you can file Schedule H by itself.d. Social security and Medicare tax on tips you didn't report to your employer or on wages you received from an employer who

didn't withhold these taxes.e. Recapture of first-time homebuyer credit. f. Write-in taxes, including uncollected social security and Medicare or RRTA tax on tips you reported to your employer or on

group-term life insurance and additional taxes on health savings accounts. g. Recapture taxes.

2. You (or your spouse, if filing jointly) received health savings account, Archer MSA, or Medicare Advantage MSA distributions.3. You had net earnings from self-employment of at least $400.4. You had wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer

social security and Medicare taxes.5. Advance payments of the premium tax credit were made for you, your spouse, or a dependent who enrolled in coverage

through the Marketplace. You or whoever enrolled you should have received Form(s) 1095-A showing the amount of the advance payments.



https://www.irs.gov/freefile

don't have your 2014 income tax return, you can request a transcript by using our automated self-service tool. Visit us at IRS.gov and click on Get Transcript of Your Tax Records (If you filed electronically last year, you may use your prior year PIN to verify your identity instead of your prior year AGI. The prior year PIN is the five digit PIN you used to electronically sign your 2014 return.) You will also be prompted to enter your date of birth.

You cannot use the Self-Select PIN method if you are a first-time filer un-der age 16 at the end of 2015.

If you cannot locate your prior year AGI or prior year PIN, use the Elec-tronic Filing PIN Request. This can be

found at IRS.gov. Click on Request an Electronic Filing PIN. Or you can call 1-866-704-7388.

Practitioner PIN. The Practitioner PIN method allows you to authorize your tax practitioner to enter or generate your PIN. The practitioner can provide you with details.Form 8453. You must send in a paper Form 8453 if you have to attach certain forms or other documents that cannot be electronically filed. For details, see Form 8453.For more details, visit www.irs.gov/efile and click on “Individuals.”Identity Protection PIN. If the IRS gave you an identity protection personal identification number (IP PIN) because you were a victim of identity theft, enter it in the spaces provided on your tax form. If the IRS has not given you this type of number, leave these spaces blank. For more information, see the instructions for Form 1040A or Form 1040.Power of attorney. If an agent is signing your return for you, a power of attorney (POA) must be filed. Attach the POA to Form 8453 and file it using that form's instructions. See Signatures, later, for more information on POAs.State returns. In most states, you can file an electronic state return simultaneously with your federal return. For more information, check with your local IRS office, state tax agency, tax pro-fessional, or the IRS website atwww.irs.gov/efile.Refunds. You can have a refund check mailed to you, or you can have your refund deposited directly to your checking or savings account or split among two or three accounts. With e-file, your refund will be issued faster than if you filed on paper.

As with a paper return, you may not get all of your refund if you owe certain past-due amounts, such as federal tax, state income tax, state unemployment compensation debts, child support, spousal support, or certain other fed-eral nontax debts, such as student loans. See Offset against debts under Refunds, later.Refund inquiries. Information about your re-turn will generally be available within 24 hours after the IRS receives your e-filed return. See Refund Information, later.

CAUTION!

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Amount you owe. To avoid late-payment pen-alties and interest, pay your taxes in full by April 18, 2016 (The due date is April 18, instead of April 15, because of the Emancipation Day holi-day in the District of Columbia -- even if you don't live in the District of Columbia. If you live in Maine or Massachusetts, you have until April 19, 2016, because of the Patriots' Day holiday in those states). See How To Pay, later, for in-formation on how to pay the amount you owe.

Using Your Personal ComputerYou can file your tax return in a fast, easy, and convenient way using your personal computer. A computer with

Internet access and tax preparation software are all you need. Best of all, you can e-file from the comfort of your home 24 hours a day, 7 days a week.

IRS approved tax preparation software is avail-able for online use on the Internet, for download from the Internet, and in retail stores.

For information, visit www.irs.gov/efile.

Through Employers and Financial InstitutionsSome businesses offer free e-file to their em-ployees, members, or customers. Others offer it for a fee. Ask your employer or financial institu-tion if they offer IRS e-file as an employee, member, or customer benefit.

Free Help With Your ReturnFree help in preparing your return is available nationwide from IRS-trained volunteers. The Volunteer Income Tax Assistance (VITA) pro-gram is designed to help low-to-moderate in-come taxpayers and the Tax Counseling for the

Elderly (TCE) program is designed to assist tax-payers age 60 or older with their tax returns. Many VITA sites offer free electronic filing and all volunteers will let you know about the credits and deductions you may be entitled to claim. To find a site near you, call 1-800-906-9887. Or to find the nearest AARP TaxAide site, visit AARP's website at www.aarp.org/taxaide or call 1-888-227-7669. For more information on these programs, go to IRS.gov and enter keyword “VITA” in the search box.

Using a Tax ProfessionalMany tax professionals electronically file tax re-turns for their clients. You may personally enter your PIN or complete Form 8879, IRS e-file Sig-nature Authorization, to authorize the tax pro-fessional to enter your PIN on your return.

Note. Tax professionals may charge a fee for IRS e-file. Fees can vary depending on the professional and the specific services rendered.

When Do IHave To File?April 18, 2016, is the due date for filing your 2015 income tax return if you use the calendar year. If you live in Maine or Massachusetts, you have until April 19, 2016, because of the Patri-ots' Day holiday in those states. For a quick view of due dates for filing a return with or with-out an extension of time to file (discussed later), see Table 1-5.

If you use a fiscal year (a year ending on the last day of any month except December, or a 52-53-week year), your income tax return is due by the 15th day of the 4th month after the close of your fiscal year.

Table 1-4. Free Ways to e-fileUse Free File for free tax software and free e-file.• IRS partners offer name-brand products for free.• Seventy percent of taxpayers are eligible for Free File software.• Everyone is eligible for Free File Fillable Forms, electronic version of IRS paper forms.• Free File software and Free File Fillable Forms are available only at www.irs.gov/freefile.Use VITA/TCE for free tax help from volunteers and free e-file.• Volunteers prepare your return and e-file it for free.• Some sites also offer do-it-yourself software. • You are eligible based either on your income or age.• Sites are located nationwide. Find one near you by visiting www.irs.gov/vita.

When To File Your 2015 ReturnFor U.S. citizens and residents who file returns on a calendar year.

For Most TaxpayersFor Certain Taxpayers

Outside the U.S.No extension requested April 18, 2016* June 15, 2016Automatic extension October 17, 2016 October 17, 2016*The due date is April 19, 2016 if you live in Maine or Massachusetts because of the Patriots' Day holiday in those states.

Table 1-5.



http://www.irs.gov/Individuals/Get-Transcripthttp://www.irs.gov/Individuals/Electronic-Filing-PIN-Requesthttp://www.irs.gov/Individuals/Electronic-Filing-PIN-Requesthttp://www.irs.gov/efilehttp://www.irs.gov/efilehttp://www.irs.gov/efilehttp://www.aarp.org/taxaidehttp://www.irs.gov/freefilehttp://www.irs.gov/vita

When the due date for doing any act for tax purposes—filing a return, paying taxes, etc.—falls on a Saturday, Sunday, or legal holi-day, the due date is delayed until the next busi-ness day.Filing paper returns on time. Your paper re-turn is filed on time if it is mailed in an envelope that is properly addressed, has enough post-age, and is postmarked by the due date. If you send your return by registered mail, the date of the registration is the postmark date. The regis-tration is evidence that the return was delivered. If you send a return by certified mail and have your receipt postmarked by a postal employee, the date on the receipt is the postmark date. The postmarked certified mail receipt is evi-dence that the return was delivered.

Private delivery services. If you use a pri-vate delivery service designated by the IRS to send your return, the postmark date generally is the date the private delivery service records in its database or marks on the mailing label. The private delivery service can tell you how to get written proof of this date.

The following are designated private deliv-ery services.

Federal Express (FedEx): FedEx First Overnight, FedEx Priority Overnight, Fe-dEx Standard Overnight, FedEx 2 Day, Fe-dEx International Next Flight Out, FedEx International Priority, FedEx International First, and FedEx International Economy.United Parcel Service (UPS): UPS Next Day Air Early AM, UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.

For more information, go to IRS.gov and en-ter “private delivery service” in the search box. The search results will direct you to the IRS mailing address to use if you are using a private delivery service. You will also find any updates to the list of designated private delivery serv-ices.

The private delivery service can tell you how to get written proof of the mailing date.Filing electronic returns on time. If you use IRS e-file, your return is considered filed on time if the authorized electronic return transmit-ter postmarks the transmission by the due date. An authorized electronic return transmitter is a participant in the IRS e-file program that trans-mits electronic tax return information directly to the IRS.

The electronic postmark is a record of when the authorized electronic return transmitter re-ceived the transmission of your electronically filed return on its host system. The date and time in your time zone controls whether your electronically filed return is timely.Filing late. If you don't file your return by the due date, you may have to pay a failure-to-file penalty and interest. For more information, see Penalties, later. Also see Interest under Amount You Owe.

If you were due a refund but you didn't file a return, you generally must file within 3 years from the date the return was due (including ex-tensions) to get that refund.

Nonresident alien. If you are a nonresident alien and earn wages subject to U.S. income tax withholding, your 2015 U.S. income tax re-turn (Form 1040NR or Form 1040NR-EZ) is due by:

April 18, 2016 (April 19, 2016 if you live in Maine or Massachusetts), if you use a cal-endar year, orThe 15th day of the 4th month after the end of your fiscal year if you use a fiscal year.

If you don't earn wages subject to U.S. in-come tax withholding, your return is due by:

June 15, 2016, if you use a calendar year, orThe 15th day of the 6th month after the end of your fiscal year, if you use a fiscal year.

See Pub. 519 for more filing information.Filing for a decedent. If you must file a final income tax return for a taxpayer who died dur-ing the year (a decedent), the return is due by the 15th day of the 4th month after the end of the decedent's normal tax year. See Pub. 559.

Extensions of Time To FileYou may be able to get an extension of time to file your return. There are three types of situa-tions where you may qualify for an extension:

Automatic extensions,You are outside the United States, orYou are serving in a combat zone.

Automatic ExtensionIf you cannot file your 2015 return by the due date, you may be able to get an automatic 6-month extension of time to file.

Example. If your return is due on April 18, 2016, you will have until October 17, 2016, to file.

If you don't pay the tax due by the reg-ular due date (generally, April 15), you will owe interest. You may also be

charged penalties, discussed later.

How to get the automatic extension. You can get the automatic extension by:

1. Using IRS e-file (electronic filing), or2. Filing a paper form.

E-file options. There are two ways you can use e-file to get an extension of time to file. Complete Form 4868, Application for Automatic Extension of Time To File U.S. Individual In-come Tax Return, to use as a worksheet. If you think you may owe tax when you file your return, use Part II of the form to estimate your balance due. If you e-file Form 4868 to the IRS, don't also send a paper Form 4868.

E-file using your personal computer or a tax professional. You can use a tax software package with your personal computer or a tax professional to file Form 4868 electronically.

CAUTION!

Free File and Free File Fillable Forms, both available at IRS.gov, allows you to prepare and e-file Form 4868 for free. You will need to pro-vide certain information from your 2014 tax re-turn. If you wish to make a payment by direct transfer from your bank account, see Pay on-line, under How To Pay, later in this chapter.

E-file and pay by credit or debit card or by direct transfer from your bank account.You can get an extension by paying part or all of your estimate of tax due by using a credit or debit card or by direct transfer from your bank account. You can do this by phone or over the Internet. You don't file Form 4868. See Pay on-line, under How To Pay, later in this chapter.Filing a paper Form 4868. You can get an ex-tension of time to file by filing a paper Form 4868. Mail it to the address shown in the form instructions.

If you want to make a payment with the form, make your check or money order payable to “United States Treasury.” Write your SSN, daytime phone number, and “2015 Form 4868” on your check or money order.When to file. You must request the automatic extension by the due date for your return. You can file your return any time before the 6-month extension period ends.When you file your return. Enter any pay-ment you made related to the extension of time to file on Form 1040, line 70. If you file Form 1040EZ or Form 1040A, include that payment in your total payments on Form 1040EZ, line 9, or Form 1040A, line 46. Also enter “Form 4868” and the amount paid in the space to the left of line 9 or line 46.

Individuals Outside theUnited StatesYou are allowed an automatic 2-month exten-sion, without filing Form 4868 (until June 15, 2016, if you use the calendar year), to file your 2015 return and pay any federal income tax due if:

1. You are a U.S. citizen or resident, and2. On the due date of your return:

a. You are living outside the United States and Puerto Rico, and your main place of business or post of duty is outside the United States and Pu-erto Rico, or

b. You are in military or naval service on duty outside the United States andPuerto Rico.

However, if you pay the tax due after the regular due date (generally, April 15), interest will be charged from that date until the date the tax is paid.

If you served in a combat zone or qualified hazardous duty area, you may be eligible for a longer extension of time to file. See Individuals Serving in Combat Zone, later, for special rules that apply to you.Married taxpayers. If you file a joint return, only one spouse has to qualify for this auto-matic extension. If you and your spouse file



separate returns, this automatic extension applies only to the spouse who qualifies.How to get the extension. To use this auto-matic extension, you must attach a statement to your return explaining what situation qualified you for the extension. (See the situations listed under (2), earlier.)Extensions beyond 2 months. If you cannot file your return within the automatic 2-month ex-tension period, you may be able to get an addi-tional 4-month extension, for a total of 6 months. File Form 4868 and check the box on line 8.No further extension. An extension of more than 6 months will generally not be granted. However, if you are outside the United States and meet certain tests, you may be granted a longer extension. For more information, see When To File and Pay in Pub. 54.

Individuals Serving inCombat ZoneThe deadline for filing your tax return, paying any tax you may owe, and filing a claim for re-fund is automatically extended if you serve in a combat zone. This applies to members of the Armed Forces, as well as merchant marines serving aboard vessels under the operational control of the Department of Defense, Red Cross personnel, accredited correspondents, and civilians under the direction of the Armed Forces in support of the Armed Forces.Combat zone. For purposes of the automatic extension, the term “combat zone” includes the following areas.

1. The Arabian peninsula area, effective Jan-uary 17, 1991.

2. The Kosovo area, effective March 24, 1999.

3. Afghanistan area, effective September 19, 2001.

See Pub. 3, Armed Forces' Tax Guide, for more detailed information on the locations com-prising each combat zone. The publication also has information about other tax benefits availa-ble to military personnel serving in a combat zone.Extension period. The deadline for filing your return, paying any tax due, and filing a claim for refund is extended for at least 180 days after the later of:

1. The last day you are in a combat zone or the last day the area qualifies as a combat zone, or

2. The last day of any continuous qualified hospitalization for injury from service in the combat zone.

In addition to the 180 days, your deadline is also extended by the number of days you had left to take action with the IRS when you en-tered the combat zone. For example, you have 312 months (January 1 – April 15) to file your tax return. Any days left in this period when you en-tered the combat zone (or the entire 312 months if you entered it before the beginning of the

year) are added to the 180 days. See Extension of Deadlines in Pub. 3 for more information.

The rules on the extension for filing your re-turn also apply when you are deployed outside the United States (away from your permanent duty station) while participating in a designated contingency operation.

How Do I PrepareMy Return?This section explains how to get ready to fill in your tax return and when to report your income and expenses. It also explains how to complete certain sections of the form. You may find Ta-ble 1-6 helpful when you prepare your paper re-turn.

Six Steps for Preparing Your Paper Return

1 — Get your records together for income and expenses.

2 — Get the forms, schedules, and publications you need.

3 — Fill in your return.4 — Check your return to make sure it is

correct.5 — Sign and date your return.6 — Attach all required forms and

schedules.

Electronic returns. For information you may find useful in preparing a paperless return, see Why Should I Use IRS e-file?, earlier.Substitute tax forms. You cannot use your own version of a tax form unless it meets the re-quirements explained in Pub. 1167, General Rules and Specifications for Substitute Forms and Schedules.Form W2. If you were an employee, you should receive Form W-2 from your employer. You will need the information from this form to prepare your return. See Form W-2 under Credit for Withholding and Estimated Tax in chapter 4.

Your employer is required to provide or send Form W-2 to you no later than February 1, 2016. If it is mailed, you should allow adequate time to receive it before contacting your em-ployer. If you still don't get the form by February 16, the IRS can help you by requesting the form from your employer. When you request IRS help, be prepared to provide the following infor-mation.

Your name, address (including ZIP code), and phone number.Your SSN.Your dates of employment.Your employer's name, address (including ZIP code), and phone number.

Form 1099. If you received certain types of in-come, you may receive a Form 1099. For exam-ple, if you received taxable interest of $10 or

Table 1-6.

more, the payer is required to provide or send Form 1099 to you no later than February 1, 2016 (or by February 16, 2016, if furnished by a broker). If it is mailed, you should allow ade-quate time to receive it before contacting the payer. If you still don't get the form by February 16 (or by March 1, 2016, if furnished by a broker), call the IRS for help.

When Do I Report MyIncome and Expenses?You must figure your taxable income on the ba-sis of a tax year. A “tax year” is an annual ac-counting period used for keeping records and reporting income and expenses. You must ac-count for your income and expenses in a way that clearly shows your taxable income. The way you do this is called an accounting method. This section explains which accounting periods and methods you can use.

Accounting PeriodsMost individual tax returns cover a calendar year—the 12 months from January 1 through December 31. If you don't use a calendar year, your accounting period is a fiscal year. A regu-lar fiscal year is a 12-month period that ends on the last day of any month except December. A 52-53-week fiscal year varies from 52 to 53 weeks and always ends on the same day of the week.

You choose your accounting period (tax year) when you file your first income tax return. It cannot be longer than 12 months.More information. For more information on accounting periods, including how to change your accounting period, see Pub. 538, Account-ing Periods and Methods.

Accounting MethodsYour accounting method is the way you account for your income and expenses. Most taxpayers use either the cash method or an accrual method. You choose a method when you file your first income tax return. If you want to change your accounting method after that, you generally must get IRS approval. Use Form 3115, Application for Change in Accounting Method, to request an accounting method change.Cash method. If you use this method, report all items of income in the year in which you ac-tually or constructively receive them. Generally, you deduct all expenses in the year you actually pay them. This is the method most individual taxpayers use.

Constructive receipt. Generally, you con-structively receive income when it is credited to your account or set apart in any way that makes it available to you. You don't need to have phys-ical possession of it. For example, interest credited to your bank account on December 31, 2015, is taxable income to you in 2015 if you could have withdrawn it in 2015 (even if the amount isn't entered in your records or with-drawn until 2016).



Garnisheed wages. If your employer uses your wages to pay your debts, or if your wages are attached or garnisheed, the full amount is constructively received by you. You must in-clude these wages in income for the year you would have received them.

Debts paid for you. If another person can-cels or pays your debts (but not as a gift or loan), you have constructively received the amount and generally must include it in your gross income for the year. See Canceled Debts in chapter 12 for more information.

Payment to third party. If a third party is paid income from property you own, you have constructively received the income. It is the same as if you had actually received the income and paid it to the third party.

Payment to an agent. Income an agent re-ceives for you is income you constructively re-ceived in the year the agent receives it. If you indicate in a contract that your income is to be paid to another person, you must include the amount in your gross income when the other person receives it.

Check received or available. A valid check that was made available to you before the end of the tax year is constructively received by you in that year. A check that was “made available to you” includes a check you have already re-ceived, but not cashed or deposited. It also in-cludes, for example, your last paycheck of the year that your employer made available for you to pick up at the office before the end of the year. It is constructively received by you in that year whether or not you pick it up before the end of the year or wait to receive it by mail after the end of the year.

No constructive receipt. There may be facts to show that you didn't constructively re-ceive income.

Example. Alice Johnson, a teacher, agreed to her school board's condition that, in her ab-sence, she would receive only the difference between her regular salary and the salary of a substitute teacher hired by the school board. Therefore, Alice didn't constructively receive the amount by which her salary was reduced to pay the substitute teacher.Accrual method. If you use an accrual method, you generally report income when you earn it, rather than when you receive it. You generally deduct your expenses when you incur them, rather than when you pay them.

Income paid in advance. An advance pay-ment of income is generally included in gross income in the year you receive it. Your method of accounting doesn't matter as long as the in-come is available to you. An advance payment may include rent or interest you receive in ad-vance and pay for services you will perform later.

A limited deferral until the next tax year may be allowed for certain advance payments. See Pub. 538 for specific information.Additional information. For more information on accounting methods, including how to change your accounting method, see Pub. 538.

Social Security Number (SSN)You must enter your SSN on your return. If you are married, enter the SSNs for both you and your spouse, whether you file jointly or sepa-rately.

If you are filing a joint return, include the SSNs in the same order as the names. Use this same order in submitting other forms and docu-ments to the IRS.

Check that both the name and SSN on your Form 1040, W-2, and 1099 agree with your so-cial security card. If they don't, certain deduc-tions and credits on your Form 1040 may be re-duced or disallowed and you may not receive credit for your social security earnings. If your Form W-2 shows an incorrect SSN or name, notify your employer or the form-issuing agent as soon as possible to make sure your earnings are credited to your social security record. If the name or SSN on your social security card is in-correct, call the SSA at 1-800-772-1213.Name change. If you changed your name be-cause of marriage, divorce, etc., be sure to re-port the change to your local Social Security Administration (SSA) office before filing your re-turn. This prevents delays in processing your return and issuing refunds. It also safeguards your future social security benefits.Dependent's SSN. You must provide the SSN of each dependent you claim, regardless of the dependent's age. This requirement applies to all dependents (not just your children) claimed on your tax return.

Exception. If your child was born and died in 2015 and didn't have an SSN, enter “DIED” in column (2) of line 6c (Form 1040 or 1040A) and include a copy of the child's birth certificate, death certificate, or hospital records. The docu-ment must show that the child was born alive.No SSN. File Form SS-5, Application for a So-cial Security Card, with your local SSA office to get an SSN for yourself or your dependent. It usually takes about 2 weeks to get an SSN. If you or your dependent isn't eligible for an SSN, see Individual taxpayer identification number (ITIN), later.

If you are a U.S. citizen or resident alien, you must show proof of age, identity, and citizen-ship or alien status with your Form SS-5. If you are 12 or older and have never been assigned an SSN, you must appear in person with this proof at an SSA office.

Form SS-5 is available at any SSA office, on the Internet at www.socialsecurity.gov, or by calling 1-800-772-1213. If you have any ques-tions about which documents you can use as proof of age, identity, or citizenship, contact your SSA office.

If your dependent doesn't have an SSN by the time your return is due, you may want to ask for an extension of time to file, as explained ear-lier under When Do I Have To File.

If you don't provide a required SSN or if you provide an incorrect SSN, your tax may be in-creased and any refund may be reduced.Adoption taxpayer identification number (ATIN). If you are in the process of adopting a child who is a U.S. citizen or resident and can-

not get an SSN for the child until the adoption is final, you can apply for an ATIN to use instead of an SSN.

File Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adop-tions, with the IRS to get an ATIN if all of the fol-lowing are true.

You have a child living with you who was placed in your home for legal adoption.You cannot get the child's existing SSN even though you have made a reasonable attempt to get it from the birth parents, the placement agency, and other persons.You cannot get an SSN for the child from the SSA because, for example, the adop-tion isn't final.You are eligible to claim the child as a de-pendent on your tax return.

After the adoption is final, you must apply for an SSN for the child. You cannot continue using the ATIN.

See Form W-7A for more information.Nonresident alien spouse. If your spouse is a nonresident alien, your spouse must have either an SSN or an ITIN if:

You file a joint return,You file a separate return and claim an ex-emption for your spouse, orYour spouse is filing a separate return.

If your spouse isn't eligible for an SSN, see the following discussion on ITINs.Individual taxpayer identification number (ITIN). The IRS will issue you an ITIN if you are a nonresident or resident alien and you don't have and are not eligible to get an SSN. This also applies to an alien spouse or dependent. To apply for an ITIN, file Form W-7 with the IRS. It usually takes about 7 weeks to get an ITIN. Enter the ITIN on your tax return wherever an SSN is requested.

If you are applying for an ITIN for your-self, your spouse, or a dependent in order to file your tax return, attach your

completed tax return to your Form W-7. See the Form W-7 instructions for how and where to file.

You cannot e-file a return using an ITIN in the calendar year the ITIN is is-sued; however, you can e-file returns

in the following years.

ITIN for tax use only. An ITIN is for tax use only. It doesn't entitle you or your dependent to social security benefits or change the employ-ment or immigration status of either of you un-der U.S. law.Penalty for not providing social security number. If you don't include your SSN or the SSN of your spouse or dependent as required, you may have to pay a penalty. See the discus-sion on Penalties, later, for more information.SSN on correspondence. If you write to the IRS about your tax account, be sure to include your SSN (and the name and SSN of your spouse, if you filed a joint return) in your corre-spondence. Because your SSN is used to

TIP

CAUTION!



http://www.socialsecurity.gov

identify your account, this helps the IRS re-spond to your correspondence promptly.

Presidential ElectionCampaign FundThis fund helps pay for Presidential election campaigns. The fund also helps pay for pedia-tric medical research. If you want $3 to go to this fund, check the box. If you are filing a joint return, your spouse can also have $3 go to the fund. If you check a box, your tax or refund won't change.

ComputationsThe following information may be useful in mak-ing the return easier t

2015 Publication 17 -...

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Transcript of 2015 Publication 17 -...